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Superannuation Guarantee (SG) Rate & Contributions Guide Australia (2026–27)

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Superannuation Guarantee (SG) Rate Guide Australia (2026–27)

Australia's compulsory retirement income framework—the Superannuation Guarantee (SG)—requires employers to make regular contributions into eligible employees' super funds to build their long-term retirement wealth.

Following the statutory legislated timetable under the Superannuation Guarantee (Administration) Act 1992, the compulsory SG rate continues its historic climb towards the long-term target of 12.0% of Ordinary Time Earnings (OTE).

This guide provides a comprehensive breakdown of 2026–27 SG rates, what earnings qualify as OTE, the Maximum Contribution Base, quarterly payment due dates, and upcoming "Payday Super" reforms.

1. Statutory Superannuation Guarantee (SG) Rate Schedule

The compulsory SG rate is paid on top of (or as part of) an employee’s gross wages:

Financial YearStatutory SG Percentage Rate
2023–2411.0%
2024–2511.5%
2025–2612.0%
2026–27 and beyond12.0% (Long-Term Target Rate)

Who Is Eligible for Compulsory Super?

  • All Employees: Full-time, part-time, and casual employees aged 18+ are entitled to SG contributions regardless of how much they earn per month (the previous $450/month threshold was completely abolished by the Federal Government).
  • Under 18s: Eligible if they work more than 30 hours in a week.
  • Contractors (Sole Traders): If a contractor is engaged primarily for their labor (more than 50% of the contract value is for personal work/skills rather than tools/materials), the hiring business is legally required to pay SG contributions on their behalf.

2. What Counts as Ordinary Time Earnings (OTE)?

Employers are required to calculate SG contributions based on an employee's Ordinary Time Earnings (OTE):

Included in OTE (Super Payable):

  • Standard base salary and wages for ordinary hours of work.
  • Casual loading (25%).
  • Shift allowances, danger allowances, and qualification allowances.
  • Commissions and performance-based bonuses.
  • Paid annual leave, paid sick/carer’s leave, and paid public holidays.

Excluded from OTE (Super NOT Payable):

  • Genuine overtime hours worked above standard 38 hours per week.
  • Unused annual leave and long service leave paid out as a lump sum upon termination.
  • Travel and meal expense reimbursements.

3. The Maximum Contribution Base (ATO Cap)

The ATO limits the maximum amount of OTE on which an employer is legally required to pay the Super Guarantee in a quarter.

  • Maximum Contribution Base (2026–27): Approximately ~$65,070 per quarter (~$260,280 per year).
  • If an employee earns $80,000 in a single quarter, the employer is only legally required to pay SG on the first $65,070 (though employment contracts may specify contributions on full earnings).

4. Payday Super Reforms & Employer Deadlines

Historically, employers paid superannuation quarterly (by the 28th day following the end of each quarter).

Under the landmark Payday Super reforms, employers must pay SG contributions at the exact same time they pay wages on each weekly, fortnightly, or monthly pay run. This ensures employees earn compound investment returns much faster and drastically cuts down on unpaid superannuation.

5. Calculate Your Superannuation Balance & Contributions

Model your retirement nest egg and verify your employer super contributions with our free tools:

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